HSBC Australia has announced it will block all customer payments to cryptocurrency exchanges effective July 24th. The bank cited a surge in investment scams as the primary reason for this decision.
In an email to customers, HSBC Australia explained the new safety measures, stating, "From 24 July 2024, HSBC will block payments from bank accounts and credit cards that we reasonably believe are being made to cryptocurrency exchanges."
The bank highlighted data from Australia's competition and consumer regulator, which revealed that Australians lost up to $171 million from investment scams in 2023. HSBC's move aligns with a broader trend among Australian financial institutions to distance themselves from the cryptocurrency industry due to heightened concerns over fraud.
This decision is likely to spark debate about the balance between consumer protection and financial freedom. While the bank aims to safeguard customers from scams, critics argue that it restricts legitimate users' access to a rapidly growing asset class.
The move by HSBC Australia follows similar actions by other major Australian banks, further tightening the financial sector's grip on cryptocurrency transactions.
July 2024, Cryptoniteuae